An interesting question was posed by Jodi Pratt, Principal of Pratt & Associates, during her insider fraud presentation at BAI Payments Connect Conference & Expo last week. Pratt was discussing the necessity of developing a code of conduct and sticking to it. She posed the idea of a ‘zero tolerance’ policy.

To an audience of conservative financial services members, zero tolerance for insider fraud may at first glance seem a wise solution – the only solution.

“Think about what that would entail: anybody, at any level, would be fired, would be prosecuted, would be required to return funds. Suddenly, you may find that you have your best revenue-producing sales person falsifying his expense report. Is your organization going to back you when you say, ‘We have to terminate this guy?’”

The moral dilemma

If you discipline your top salesman, you risk alienating him and the entire sales force. Can you risk it?

If you don’t stick to your guns, the rest of your staff may see that your code of conduct is not even as good as the paper it is written on.

What are your suggestions?